Paper Topic:

The basics of the stock market

Basic of Stock Market

Table of Contents

Basic of Stock Market

Introduction . 3

What Are Stocks

Definition . 4

Being an Owner 4 Debt vs Equity 4 Risk . 5

Different Types of Stocks

Common Stock . 6 Stock . 6

How Stocks Trade

The New York Stock Exchange . 7

The Nasdaq . 8 Other Exchanges . 8

Buying Stocks

Using a Brokerage . 9 DRIPs DIPs 9

Bull and Bear Markets

The Bulls . 9

The Bears . 10

p Price Chart / Stock Table . 10

Conclusion . 11

Introduction Wouldn 't you love to be a business owner without ever having to show up at work ? Imagine if you could sit back , watch your company grow , and collect the dividend checks as the money rolls in ! As you 've probably guessed , we 're talking about owning stocks . This fabulous category of financial instruments is , without a doubt , one of the greatest tools ever invented for building wealth . Stocks are a part , if not the cornerstone , of nearly any investment portfolio . When you start on your road to financial freedom , you need to have a solid understanding of stocks and how they trade on the stock market

Over the last few decades , the average person 's interest in the stock market has grown exponentially . What was once a toy of the rich has now turned into the vehicle of choice for growing wealth . This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own stocks

This is intended to explain all the basic questions about the investing . This will help new investors to lighten up their confusions and equip them the basic idea of Stock Market

Basic of Stock Market

What Are Stocks

Stock is a share in the ownership of a company . Stock represents a claim on the company 's assets and earnings . As you acquire more stock your ownership stake in the company becomes greater . Shares , equity , or stock , it all means the same thing

Being an Owner

Holding a company 's stock means that you are one of the many owners (shareholders ) of a company and , as such , you have a claim (albeit usually very small ) to everything the company owns . This means that technically you own a tiny sliver of every piece of furniture , every trademark , and every contract of the company . As an owner , you are entitled to your share of the company 's earnings as well as any voting rights to the stock

A stock is represented by a stock certificate . This is a fancy piece of that is proof of your ownership . In today 's computer age shareholders won 't actually get to see this document because the brokerage keeps these records electronically , which is also known as holding shares . In the past , when a person wanted to sell his or her shares , that person physically took the certificates down to the brokerage . Now , trading can be done with a click of the mouse or a phone call

Debt vs . Equity...

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